Shared Use Kitchen - What Do You Think?

Hello, I met with a woman today who runs a shared use kitchen. I am looking to turn my hobby into a small business for myself. The state that I live in does not have anything like this so I had to drive 45 minutes to this kitchen. To use this kitchen I would pay a yearly fee of $100 and then $26 per hour that I need. I would also have to pay a fee to use the freezer and fridge and storage area. I did the math and just to make one cake there would cost me $114. That's just to use the space, that doesn't even count the ingredients and supplies to make the cake.

Is this the going rate to rent space at most places? I was thinking about also maybe contacting small cafes in my area and see if they'd be willing to rent space, but if this is the going rate I don't think I can justify that right now.

thank you! I guess it is the going rate. I agree, I want to use this as a starting point to get my name out, start to advertise and see where things go. Thank you for the replies and the information you gave me.

I know, I wasn't expecting it to be so expensive. I was thinking last night though, what can I expect the cafes to charge? They have to make it worth it to them to rent space to me. The more I think about it, the more I think this isn't going to work for me.

I am actually setting up right now. I contacted local VFW's, churches, and firehouses that had commercial kitchens. I was lucky to have a firehouse 5 miles from my house agree to rent to me. I am paying them a flat monthly rate for use of the kitchen when it is not being rented out for banquets or other fire house events. I have to have my own food license, insurance and etc., but this is by far the cheapest way to start up. I too am just coming from hobby to turning into a business. Oh, the one other thing for my state is that I have to have my own refrigerator and storage cabinet. The firehouse was gracious enough to designate a space for me to bring my own in.

....the average business owner is paying per day in a shop of their own?

rent+insurance+utilities+maintenance fee+equipment costs. Rent being the big variable. Big city/ small city/ downtown/ out in the boonies---- that all affect rents by a factor of a hundred! Like someone said- Rodeo Drive Beverly Hills, Ca versus Lost Springs, Wyoming (smallest US town)--- can't compare the two in rent costs.

Not looking to compare locations, just looking for an approximation where ever your place is. Be it $100.00 worth of over head or $1,000. per day, what's the real picture look like from someone who actually owns a place?

You wouldn't have to give anyone a street address......just mention of small town (under 5,000 people) or larger, how many square feet you have, how many employees........mid-west, west coast, east coast, rural or city.

With-out someone ever saying what they are really paying the rest of us just are guessing.

This is in Massachusetts, it's on a farm. It's a small place, not sure of the square footage or anything. It's a shared kitchen, it's a first come first serve basis and when you rent the space you are the only one using it at that time.

Reganlynn- I am in MA too and looking for kitchen space. I was emailed by someone about a kitchen in SE mass that was $125 a day or $25 an hour but didn;t get back to her for any other particulars because it was also too far for me. I have been looking for cheaper space in either churches, vfw's etc but the challenge is they may not chrage as much but they also aren;t really set up for a business ie, commercial grade appliances, adequate longterm storage, etc.. Ughhh

I know, it's really frustrating. I live in RI, the woman I met with said that home kitchens are legal in MA, as long as you're not making anything perishable. But I heard that the laws may differ from town to town. I was thinking about VFW, or knights of columbus halls too but all the ones I have seen are very old looking and not sure if they'd be approved for baking cakes out of.

I just can't see making any profit from making a cake in a rented kitchen like this. There is only one near me and the cost is about the same. To me it isn't worth it. You have to bake and decorate these cakes in that facility and it could cost anywhere from $100 or more on one cake.

Someone had mentioned fire departments... I hadn't even thought of those. At this point, I don't even know if I want to pursue this as a business. I get burned out just doing stuff for friends and family. I just finished the last cake I'm going to do before my c-section next week and I was so happy to get it done, I almost did a "happy dance" at the thought of no more cakes for a while. LOL

Hope you find something that is more reasonable or you're able to figure out how to make it cost effective for you.

Erinalicia, I hear ya! I get burnt out too, I can't charge for my cakes so I just do them for family and friends parties that I go to, and at the end of the night I am exhausted from putting so much into a cake. From what I am finding out with looking at these kitchens there is no way to make a profit. I knew in the beginning I wasn't going to make much profit anyway, just get my name out there. But, it's going to cost me way more to make a cake than I could ever charge for one. If I could break even that would be great at this point, but to actually have to pay just isn't worth it.

I've always thought it would be good to try to organize a co-op of some kind.... where the people who are using the facilities share the start-up costs and ongoing costs of the commercial kitchen, but you don't pay the exorbitant rates because no one is seeking to make a profit on the actual kitchen -- just the products that come out of it.

Don't know how you'd go about finding like-minded people in your area, though.

I've always thought it would be good to try to organize a co-op of some kind.... where the people who are using the facilities share the start-up costs and ongoing costs of the commercial kitchen, but you don't pay the exorbitant rates because no one is seeking to make a profit on the actual kitchen -- just the products that come out of it.

Don't know how you'd go about finding like-minded people in your area, though.

I've thought about this often. I'd love to do it........even day dreamed about organizing one in my area. You'd have to find special people who can do this. Maybe all females, ha...........

There are craft malls, artistian malls (in Vancouver @ grandville island) and antique malls. In Chicago they started a French Market....but I'm not certain in you can work in your booth or just bring in product. I believe SF has one or two co-op food businesses.

of course, construction started and doors are on, but everything stalled when the economy took a dive and the place is standing empty w/o any equipment. They said they hope for a sept/oct opening., but who knows....my application is in and i'm looking for alternatives.